US: China’s BYD has overtaken Tesla to become the world’s largest electric carmaker in 2025, signalling a decisive moment in the shift of automotive power towards China.
BYD sold about 2.26 million battery electric cars over the year, comfortably ahead of Tesla’s 1.63 million deliveries. The milestone comes as Tesla, led by Elon Musk, reported a sharp slowdown in sales towards the end of the year, capping a difficult period for the US automaker.
The change in rankings is largely symbolic but underscores the rapid rise of China’s carmakers, who have seized the global transition to electric vehicles to expand their reach. Chinese exports of cars have surged in recent years, driven by BYD alongside rivals such as SAIC and Chery, which operates the Omoda and Jaecoo brands.
While global electric car sales have continued to grow, the pace has been slower than many had anticipated. Carmakers have been forced into aggressive price cuts, and several governments have softened or delayed targets to phase out petrol vehicles, adding pressure across the sector.
Tesla’s struggles were particularly evident in the final quarter of the year, when deliveries fell to just over 418,000 vehicles, well below market expectations. Full-year sales dropped 9 percent compared with 2024, marking a second consecutive annual decline. The company’s share price slipped further as investors absorbed the weak figures.
Celebrating two historic achievements: BYD delivered more than 4.6 million New Energy Vehicles in 2025, proudly claiming the Global Sales Champion. For the first time, BYD’s overseas sales have surpassed 1 million units in a single year.
Together with our customers worldwide,… pic.twitter.com/iondAvVXW8
— BYD Global (@BYDGlobal) January 1, 2026
A combination of factors weighed on Tesla’s performance. The rollback of electric vehicle subsidies and emissions incentives in the United States reduced demand, while Musk’s increasingly political public profile sparked a backlash among some consumers.
Despite this, Tesla remains the world’s most valuable carmaker, with a market valuation far exceeding that of its rivals, as investors continue to bet on its ambitions in artificial intelligence, robotics, and autonomous driving.
BYD, meanwhile, maintained strong momentum. Its electric car sales rose 28 percent over the year, even as competition intensified within China. Overall vehicle sales reached 4.55 million units, cementing its position as a dominant global force.
Founded in 1995 as a battery maker, BYD has steadily evolved into a powerhouse that is reshaping the balance of the global car industry.
